PenCom to prioritise full implementation of Contributory Pension Scheme

The Director-General of PenCom, Omolola Oloworaran, said moving forward, accrued pension rights would be included in the monthly personnel cost general warrant, ensuring automatic and timely payments. Photo: Abdullahi Jalaluddeen/Radio Nigeria

The National Pension Commission (PenCom) says it is placing a premium on ensuring the best possible implementation of the Contributory Pension Scheme across states and private organisations.

Omolola Oloworaran, the Director-General of PenCom, announced this at the first 2025 Consultative Forum for States and the Federal Capital Territory (FCT), held in Kano.

She stated that the forum aimed to bring stakeholders together to discuss the progress and challenges of implementing the Contributory Pension Scheme (CPS).

Ms Oloworaran listed key achievements recorded so far by the commission to include the approval of a N758 billion Federal Government bond to settle N253 billion in accrued pension rights for retirees of Treasury-funded MDAs.

She noted other accomplishments, such as clearing N388 billion in unpaid pension increases dating back to 2007, and injecting N107 billion into the Pension Protection Fund.

“However, despite this progress, only eight states are fully implementing the CPS, while 25 states and the FCT have enacted CPS laws. To encourage adoption, PenCom is offering a flexible approach, allowing states to begin implementation with new employees or those with less than ten years of service. This aims to reduce the burden of accrued rights on states and facilitate a smoother transition,” she said.

The Director-General urged participants to use the forum to exchange ideas, share experiences, and develop solutions to advance the pension reform agenda, underscoring the commission’s dedication to building a secure retirement system for all Nigerians.

Alhaji Abdullahi Musa, The Head of Civil Service of Kano State, commended PenCom for its leadership in guiding subnational governments towards transparency, accountability, and sustainability in pension administration.

He emphasised that Kano State’s adoption of a hybrid pension system, combining Defined Benefits (DB) and Contributory Pension Scheme (CPS) models, is a practical way to address the state’s socio-economic realities.

Dr Bilyaminu Aminu, Executive Secretary of the Jigawa State Local Government Pension Contributory Scheme, and Hajia Mariam Ozioma Abeda, Director-General of the Kogi State Pension Commission, said the meeting would be vital in refining the methods for enhancing full implementation of the Contributory Pension Scheme across the nation.

Editing by Oluwaseyi Ajibade and Tony Okerafor